Backgrounder

Boeing in Korea
Boeing and the Republic of Korea (ROK) have a solid history of working together that
goes back more than 65 years. Boeing has continuously developed partnerships with
Korea in both the commercial airplane and defense markets that support the growth
of the Korean aerospace industry. Today, Korea represents one of the top 10 largest
international markets for The Boeing Companys commercial and defense business
units.
Boeing Korea was established in 1988 and today employs more than 200 people across
eight Korean cities: Seoul, Busan, Gimpo, Icheon, Seosan, Daegu, Sacheon and
Yeongcheon. Led by Eric John, president, Boeing Korea works closely with Korean
customers such as Korean Air, Asiana Airlines and Jeju Air.
With the Boeing Defense, Space & Security business in Korea, Boeing continues to
focus on strengthening ties with current industry partners and defense customers such
as the Defense Acquisition Program Administration and the Ministry of National Defense
while establishing new partnerships to enable growth for both Boeing and the Korean
aerospace industry.
Korean Industry Partnerships
Koreas aircraft manufacturing industry began with the establishment of the Korean Air
Aerospace Division (KAL-ASD) in 1976. As a pioneer in this field, KAL-ASD has
co-produced military aircraft such as MD 500 helicopters, Northrup F-5 fighters and
Sikorsky UH-60 midsized utility helicopters.
Boeing has a long, cooperative relationship with KAL-ASD. Over the years, KAL has
demonstrated its strengths as a valuable partner on the 737, 747 and 777 programs.
Today, KAL supplies composite structures and components on Boeings newest
commercial airplane programs, including the 787 Dreamliner, the 747-8 and 737 MAX.
KAL has also provided support services to some of Boeings military aircraft programs,
and the two companies are pursuing opportunities to broaden their defense
collaboration. KAL has been recognized as a Boeing Supplier of the Year in 2000, 2006
and 2012.
Korea Aerospace Industries (KAI) has been a supplier to Boeing since KAIs inception
in 1999, first providing structural components for the 777 and then steadily increasing
its work. KAI now has contracts with Boeing to provide 777 nacelle fittings, 737
empennages, 737-based P-8 empennages and raked wingtips, as well as the pivot
bulkhead for the 787 Dreamliner. KAI also provides major structural component parts
as a tier-2 supplier for 747-8, 767 and 787.
KAI is a valued supplier on a number of Boeing defense programs. It manufactures
AH-64 Apache fuselages and F-15 forward fuselages and wings and is a key supplier

on the P-8 program and A-10 Wing Replacement program. KAI also performed
extensive modifications necessary for the 737-based Peace Eye Airborne Early
Warning and Control (AEW&C) aircraft for the Republic of Korea Air Force (ROKAF).
KAI has been recognized as a Boeing Supplier of the Year in 2010 and 2012.
Boeing is a minority shareholder in Huneed Technologies, a leading supplier
of communications networks systems for Koreas command, control, communications
and networks market. Boeing and Huneed continue to enhance their cooperation
through targeted product and service opportunities that help position Huneed for global
avionics market growth by providing state-of-the-art military aircraft avionics equipment,
electrical components and related services to Boeing and its major suppliers.
Hyundai Glovis brings its expertise in logistics handling and supply chain distribution for
the automotive industry to the F-15K Performance Based Logistics program. Hyundai
Glovis supports in-country logistics activities, including transporting key F-15K parts
from Korean ports of entry to maintenance depots at Daegu and Seosan Air Base and
warehousing and distributing parts inventory at each air base. Hyundai Glovis also
responds to ROKAF F-15K parts requirements and provides timely delivery of parts to
the maintenance depots.
Throughout its 26-year history, Hyune Aero-Specialty has provided parts to Boeing and
its suppliers for commercial airplane programs, including the 737, 747, 767 and 787.
In 2015, Boeing spent more than $500 million with Korean companies, maintaining
Koreas position within the top quartile of nations with which Boeing does business.
More than 35 Korean companies provided products and services for Boeing production
and sustainment programs, research and development, and a broad range of internal
services that support Boeing operations. Boeing remains committed to helping Korea
address its industrial and technology development needs and has shown continuous
and incremental commitment toward Korea, spending $2.9 billion over the past 10
years.
Boeing Commercial Airplanes
Boeing has been involved with Koreas growing commercial aviation business from the
very beginning. The first heritage Boeing airplane in Korea was the Douglas DC-3. In
1969, the countrys flagship airline, Korean Air then Korean Air Lines (KAL)
purchased its first commercial jetliner, a Boeing 707, which signaled the beginning of
Koreas modern commercial aviation business.
Today, Korean Air is one of the top global airlines and is also known for its robust cargo
business. Boeing freighters have proved to be a major factor in catapulting the airline to
become the largest carrier between North America and Asia.
Last year, Korean Air became Boeings first 737 MAX customer in Northeast Asia
outside of China when it placed a firm order for 30 737 MAX airplanes. The airline is
also a dual-sourced supplier for the distinct Advanced Technology (AT) winglet that is

featured on the 737 MAX. In addition, the airline has the distinction of being the first
Boeing customer to order both the 747-8 Intercontinental (passenger) and the 747-8
Freighter versions of the airplane; it is also a key supplier partner for the 747-8 program.
In February 2012, Korean Air became the first airline in the world to simultaneously
operate a 747-8 Freighter and a 777 Freighter.
As of May 2016, Korean Air operates a total of 86 Boeing passenger airplanes:
9 747-400s, 5 747-8 Intercontinentals, 15 777-200ERs, 18 777-300ERs, 4 777-300s
and 35 737s (13 737-800s, 16 737-900s and 6 737-900ERs). Korean Air also operates
28 Boeing freighters: 17 747-400Fs, 6 747-8Fs and 5 777Fs. Its low-budget subsidiary,
Jin Air, currently operates 20 Boeing passenger airplanes: 3 777-200ERs and 17
737-800s.
Asiana Airlines, Koreas second-largest carrier, was established in 1988 and took
delivery of its very first airplane, a Boeing 737-400, that year. The airline made its
inaugural flight in 1989 and since then has rapidly expanded, garnering many key
accolades along the way. In 2007, Asiana Airlines was awarded the prestigious Skytrax
five-star ranking, an accolade shared with only a handful of airlines around the world. In
2009, Air Transport World awarded Asiana with the Airline of the Year award, which is
considered one of the most honorable awards in the airline industry.
Today, the airline operates 33 Boeing airplanes, including 7 767-300s, 11 777-200ERs,
2 747-400s, 2 747-400 passenger/freighter combi airplanes, 10 747-400 Freighters and
1 767-300 Freighter. Boeing airplanes have played an important role in helping Asiana
Airlines become a world-leading airline.
Jeju Air, Koreas first low-budget airline, operates an all-Boeing fleet of Next-Generation
737-800s. Jeju Airs rapid success has turned the relatively new airline into Koreas
third-largest carrier. Due to continued growth in the low-cost air travel market, Jeju Air
looks to expand its intra- and inter-regional network. Jeju Air currently operates 23
leased 737-800s.
Boeing Flight Services, a unit of Boeing Commercial Aviation Services, maintains a
sizable in-country presence to deliver training locally. Flight Services currently provides
flight training for Boeing aircraft to Korean Air and its low-cost subsidiary Jin Air. It also
provides training on Boeing and Airbus aircraft to Asiana at the airlines training
facilities.
In November 2013, Boeing participated in a groundbreaking ceremony with Incheon city
and Korean Air for construction of Koreas largest aviation training facility, located in
Incheons Free Economic Zone. The new training center, built by Korean Air, is slated to
open in 2016, and will allow Boeing to continue to provide world-class pilot training to
Korean Air in a modern state-of-the-art facility.

Boeing Defense, Space & Security

Boeing has been involved in Koreas defense and aerospace development since
Douglas AD Skyraiders went into service during the Korean War. As a premier jet
fighter developer and producer, Boeing involvement with Korean military aircraft dates
back to 1969, when McDonnell Douglas delivered F-4 Phantoms to the Korean Ministry
of National Defense.
With the acquisition of 14 U.S. Army Chinooks, the Korean Armed Forces are the
fourth-largest H-47 operator, with 42 aircraft. Chinooks are operated by both the ROK
Army and Air Force. The ROK is considering upgrades to its Chinook fleet in the next
five-year plan. Upgrades to Koreas Chinooks would address obsolescence, bring
increased capability and sustainability, and provide the battlefield interoperability
required for current joint operations.
The ROK selected the AH-64E Apache equipped with the Longbow fire control radar as
its new attack helicopter, increasing Koreas ability to defend against land-based and
littoral threats in the region. The Foreign Military Sales contract between the ROK Army
and the U.S. Army for 36 AH-64E Apaches was signed in August 2013, and the first
batch of 4 Korean Apaches was delivered May 25, 2016.
In 2002, the ROK awarded Boeing a contract for 40 F-15K aircraft, all of which were
delivered to the ROKAF ahead of schedule and on cost. Korea, in 2008, awarded
Boeing a second contract for 21 F-15Ks; these aircraft were delivered on schedule and
on cost. The final two F-15Ks were delivered April 2, 2012.
F-15K service life is planned through 2040 and beyond, with technology insertions and
upgrades throughout the life cycle. Boeing continues to support the ROKAF F-15K fleet
through a long-term, affordable performance based logistics (PBL) program, ensuring
that ROKAF F-15K Slam Eagles are operationally ready to protect the ROK when called
on. Korean supplier-partner Hyundai Glovis provides in-country logistics handling and
supply chain distribution for the F-15K PBL program.
In September 2012, Boeing signed a memorandum of understanding with the province
of Gyeongsangbuk-do and the city of Yeongcheon to establish an avionics
maintenance, repair and overhaul facility. Located in the Yeongcheon Industry District of
Daegu-Gyeongbuk Free Economic Zone near Daegu Air Base, the center allows the
company to more affordably and conveniently support the ROKAF F-15K fleet. The
facility supports the areas Aero Techno Valley vision of a high-tech aerospace industry
corridor and expanded in-country avionics capabilities, and avionics services offered
there could expand to support other assets throughout the region. The 10,000-squarefoot (930-square-meter) high-tech facility officially opened on May 28, 2015.
In November 2006, Boeing was selected to provide the ROKAF with four Peace Eye
737 AEW&C aircraft and ground support segments. Korean industry supplier KAI
performed extensive modifications necessary to transform the aircraft into the Peace

Eye configuration. The four aircraft were delivered in September 2011, December 2011,
May 2012 and October 2012.
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Contact:
Chang Koh
+82 2 2075 4815
changgyun.koh@boeing.com
CJ Nothum
+1 314 233 4126
chamila.j.nothum@boeing.com
Kevin Yoo
+1 206 766 2906
kevin.k.yoo@boeing.com
Last revised June 2016